Can AMD (AMD) Shake Off the Goldman Downgrade?
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Price: $160.32 -1.81%
Rating Summary:
48 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 47
Rating Summary:
48 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 16 | New: 47
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After getting whacked 13 percent Thursday on a nasty Goldman Sachs downgrade, traders will be looking for a bounce in Advanced Micro Devices, Inc. (NYSE: AMD) Friday.
While early, so far, things are looking up for the recent momentum stock gone bad. In pre-open trading Friday, the stock last traded at $3.90, up 1.8%.
Before yesterday's downgrade, shares of AMD were up 83% YTD as investors overlooked the death spiral in the P.C. business and focused on the company's inroads in gaming.
In its downgrade yesterday, Goldman said while consensus numbers will likely rise as the Street accounts for the increase in gaming, it won't be enough to offset secular challenges in the PC business, which is estimated to be 45% of this year's sales.
Goldman also said AMD's stock has a history of fading after every rally. Is this time it different? Longs would like to think so. But Goldman says AMD will suffer the same fate this time. They see the stock going down to $2.50 per share, or 35 downside from here.
While early, so far, things are looking up for the recent momentum stock gone bad. In pre-open trading Friday, the stock last traded at $3.90, up 1.8%.
Before yesterday's downgrade, shares of AMD were up 83% YTD as investors overlooked the death spiral in the P.C. business and focused on the company's inroads in gaming.
In its downgrade yesterday, Goldman said while consensus numbers will likely rise as the Street accounts for the increase in gaming, it won't be enough to offset secular challenges in the PC business, which is estimated to be 45% of this year's sales.
Goldman also said AMD's stock has a history of fading after every rally. Is this time it different? Longs would like to think so. But Goldman says AMD will suffer the same fate this time. They see the stock going down to $2.50 per share, or 35 downside from here.
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